Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Rubber drives agro investment

Rubber drives agro investment

Rubber drives agro investment


The value of approved agricultural projects in 2011 increased by more than 30 per cent compared to the year before, according to data from the Council for the Development of Cambodia.


The CDC approved 24 projects worth US$724.9 million last year, $674 million of which was in rubber plantations. Agro industry and rice milling attracted about $30 million and $19 million, respectively, the data showed. More than 82 per cent of the investment dollars came from overseas.

Cambodia’s potential for rubber cultivation, coupled with rising international demand in 2011, led to greatly increased foreign investment in rubber plantations, director general of Rural Development Bank Son Koun Thor said yesterday.

The government made rubber a priority sector due to high international prices, he said.

Most of the rubber investment came from Indonesia, Vietnam and Malaysia, business and economics lecturer at the University of Cambodia Chheng Kimlong said yesterday.

The investment in rubber jumped about 256 per cent, according to the CDC data. The country saw $189 million in rubber investment in 2010. The bulk of 2010 agricultural investment, or about $352 million, was in agro industry.

The government goal of exporting 1 million tonnes of milled rice by 2015 has brought Cambodia’s rice industry international investment, Son Koun Thor said.

“In 2010, the government issued a policy to hike the export of milled rice. So investors have invested more in the sector,” he said. The industry still needs about $200 million in capital to purchase, transport and mill the targeted amount of rice, Son Koun Thor said.

Seng Bun Sor, deputy director of the Cambodian Rice Millers Association, said yesterday that capital available to domestic millers were limited, making the last year’s investment crucial to the industry.

Although some of the investments represented new competition for the association, Seng Bun Sor said the investment was welcome.

“We were not worried about competition with foreign investors here because the country needs more investment in milled rice. Rice millers are lacking standard machinery to mill their rice,” he said.


  • Professor beaten by mob in Phnom Penh after alleged hit-and-run

    Updated with new information: 6:44am, Tuesday March 13 2018 A university professor accused of a hit-and-run has been transported to Vietnam with serious head injuries after he was brutally beaten by a mob in Phnom Penh late Sunday afternoon. A video of the attack shows a group

  • American ‘fugitive’ arrested in Cambodia outside of US Embassy

    An American citizen was arrested on request by the US Embassy in Phnom Penh on Tuesday, according to Cambodian police. Major General Uk Hei Sela, chief of investigations at the Department of Immigration, identified the man as American Jan Sterling Hagen, and said he was

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of